Bitcoin Slides as Asia Macro Shocks Affect Markets

Japan’s carry trade unwind strengthened the yen and led to risk-asset selling, pushing Bitcoin lower.

China’s non-manufacturing PMI contraction signaled weak regional liquidity, adding pressure to BTC.

QCP’s liquidation warning and Nasdaq review fears fueled panic selling despite positive U.S. macro signals.

Bitcoin fell sharply early December, losing ground from $91,000 to $86,000. Analysts noted the move was driven by shifts in Asia, not U.S. monetary policy. Investors reacted to Japan’s hawkish signals and China’s non-manufacturing PMI contraction, indicating a sudden liquidity drain affecting global risk assets, including cryptocurrencies.

Japan’s Carry Trade Reversal Triggers Volatility

According to Kyle Chase, a Bitcoin analyst, the Japan carry trade unwind played a key role. Investors borrow yen at low rates to buy higher-yield assets overseas. When Japan’s policy appeared tighter, capital rushed back home, strengthening the yen. Consequently, global risk assets sold off, with Bitcoin reacting faster than traditional markets. Notably, this mirrors a similar pattern seen during the summer sell-off.

China’s Regional Liquidity Concerns

At the same time, China’s latest PMI revealed contraction in non-manufacturing activity for the first time in nearly three years. Chase explained that Asia’s growth pullback intensified the sell-off

Traders began questioning whether global liquidity was truly expanding, despite dovish signals from the U.S. Federal Reserve. Hence, Bitcoin faced pressure from multiple regional forces simultaneously.

Strategy and Market Headlines

QCP Broadcast highlighted an additional catalyst. CEO Phong Le warned the firm could liquidate Bitcoin if stock prices fell below NAV or funding tightened. This statement triggered panic selling, fueling liquidations ahead of Nasdaq’s December 12 index review

Meanwhile, macro conditions suggested strong tailwinds, including the end of quantitative tightening, high odds of a December rate cut, and inflows into spot ETFs. However, these factors could not offset regional liquidity shifts and strategic sell signals.

Bitcoin’s early December pullback underscores how interconnected global markets now influence digital assets. The yen’s strength, combined with China’s slowdown, created crosscurrents that even supportive U.S. monetary trends could not neutralize.

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